Higher Interest Rates on Bonds and Savings Accounts
Not everything about a rising national debt is necessarily bad for consumers. Over time, a rising national debt can result in higher interest rates. For example, when consumers get saddled with too much debt, they must pay a higher interest rate if they seek additional loans. So too with the U.S. government.
This can be a boon for some investors. If the government pays higher interest rates on its debt instruments, like U.S. Treasury bills, investors benefit by earning more when they buy government securities.
